WebMediaBrands Inc. Reports Financial Results For Its Fourth Quarter and Year Ended December 31, 2012

WebMediaBrands Inc. (Nasdaq: WEBM) today reported results for the fourth
quarter and full year ended December 31, 2012.

Highlights for the fourth quarter of 2012 include:

Revenues for the fourth quarter of 2012 were $3.3 million and revenues
from trade shows and research increased 24% and 6%, respectively,
compared to the same period in 2011.

Net loss for the fourth quarter of 2012 was $6.5 million and included
a non-cash impairment charge of $5.5 million related to the write-down
of goodwill, compared to a net loss of $9.1 million for the same
period in 2011.

Highlights for the year ended December 31, 2012 include:

Revenues for the year ended December 31, 2012 were $14.0 million
compared to revenues of $12.4 million for the year ended December 31,
2011, an increase of 12%. Revenues from research, trade shows and
advertising increased 80%, 35% and 18%, respectively, compared to
2011. Inside Network's market research and data services business,
which includes AppData, contributed $1.7 million in revenues during
2012. We acquired Inside Network in May 2011.

Net loss was $8.7 million for the year ended December 31, 2012, and
included a non-cash impairment charge of $5.5 million related to the
write-down of goodwill, compared to a net loss of $11.9 million for
the year ended December 31, 2011. Non-GAAP loss, excluding interest,
taxes, impairment, depreciation, amortization and stock-based
compensation, or EBITDA, was $1.5 million for the year ended December
31, 2012 and included severance-related costs and a loss on the sale
of certain assets totaling $402,000. EBITDA loss was $1.6 million for
the same period in 2011. Stock-based compensation expense was $528,000
during the year ended December 31, 2012 compared to $991,000 during
the same period in 2011.

"Our financial results for the year ended December 31, 2012, included
revenue growth of 12%, with our research and trade show businesses
leading the way with growth of 80% and 35%, respectively," stated Alan
M. Meckler, Chairman and CEO of WebMediaBrands, Inc. "We have continued
to invest in our product offerings, specifically with our research and
trade show businesses," added Meckler. "We remain optimistic and
encouraged about the future success and value of our business."

The conference call number is 888-437-9445 for domestic participants and
719-325-2329 for international participants; confirmation code
"4162863." Please call five minutes in advance to ensure that you are
connected prior to the presentation. The conference call replay will be
available until Tuesday, March 5, 2013. Replay call numbers are
888-203-1112 for domestic participants and 719-457-0820 for
international participants; confirmation code "4162863."

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Operations

For the Three Months and Year Ended December 31, 2012 and 2011

(in thousands, except per share amounts)

Three Months EndedDecember 31,

Year EndedDecember 31,

2012

2011

2012

2011

Revenues

$

3,320

$

3,375

$

13,962

$

12,429

Cost of revenues

2,101

1,897

7,931

7,154

Advertising, promotion and selling

772

551

2,692

2,088

General and administrative

1,142

1,395

5,080

5,475

Depreciation

71

77

309

319

Amortization

131

142

540

513

Impairment

5,542

8,289

5,542

8,289

Contingent acquisition consideration

-

-

-

329

Total operating expenses

9,759

12,351

22,094

24,167

Operating loss

(6,439

)

(8,976

)

(8,132

)

(11,738

)

Other loss, net

(24

)

(2

)

(240

)

(9

)

Interest income

1

45

4

86

Interest expense

(62

)

(122

)

(271

)

(657

)

Loss before income taxes

(6,524

)

(9,055

)

(8,639

)

(12,318

)

Provision (benefit) for income taxes

4

14

34

(403

)

Net loss

$

(6,528

)

$

(9,069

)

$

(8,673

)

$

(11,915

)

Loss per share:

Basic net loss

$

(1.09

)

$

(1.52

)

$

(1.45

)

$

(2.05

)

Diluted net loss

$

(1.09

)

$

(1.52

)

$

(1.45

)

$

(2.05

)

Weighted average shares used in computing loss per share:

Basic

6,014

5,976

5,991

5,818

Diluted

6,014

5,976

5,991

5,818

Shares outstanding and per share data have been adjusted to give
effect to the one-for-seven reverse stocksplit implemented
on August 16, 2012.

WebMediaBrands Inc.

Unaudited Consolidated Condensed Balance Sheets

December 31, 2012 and 2011

(in thousands, except share and per share amounts)

December 31,2012

December 31,2011

ASSETS

Current assets:

Cash and cash equivalents

$

2,210

$

3,438

Accounts receivable, net of allowances of $16 and $11, respectively

524

489

Prepaid expenses and other current assets

503

575

Total current assets

3,237

4,502

Property and equipment, net of accumulated depreciation of $1,475
and $1,350, respectively

Shares outstanding and per share data have been adjusted to give
effect to the one-for-seven reverse stocksplit implemented
on August 16, 2012.

WebMediaBrands Inc.

Unaudited Consolidated Condensed Statements of Cash Flows

For the Years Ended December 31, 2012 and 2011 (in thousands)

Year Ended December 31,

2012

2011

Cash flows from operating activities:

Net loss

$

(8,673

)

$

(11,915

)

Adjustments to reconcile net loss to net cash used in operating
activities:

Impairment

5,542

8,289

Depreciation and amortization

849

832

Stock-based compensation

528

991

Provision for losses on accounts receivable

27

15

Other, net

236

(2

)

Amortization of debt issuance costs

36

28

Deferred income taxes

30

(410

)

Changes in current assets and liabilities (net of businesses
acquired):

Accounts receivable, net

(62

)

135

Prepaid expenses and other assets

176

660

Accounts payable, accrued expenses and other liabilities

167

(702

)

Deferred revenues

1

236

Net cash used in operating activities

(1,143

)

(1,843

)

Cash flows from investing activities:

Purchases of property and equipment

(117

)

(57

)

Acquisitions of businesses, assets and other

(220

)

(9,062

)

Proceeds from sale of assets

132

-

Net cash used in investing activities

(205

)

(9,119

)

Cash flows from financing activities:

Borrowings from related party

-

1,750

Purchase of treasury stock

-

(390

)

Debt issuance costs

(23

)

(26

)

Repayment of borrowings from related party

-

(50

)

Proceeds from exercise of stock options

143

146

Net cash provided by financing activities

120

1,430

Effect of exchange rates on cash

-

-

Net decrease in cash and cash equivalents

(1,228

)

(9,532

)

Cash and cash equivalents, beginning of year

3,438

12,970

Cash and cash equivalents, end of year

$

2,210

$

3,438

Supplemental disclosures of cash flow:

Cash refund of income taxes, net

$

70

$

393

Cash paid for interest

$

235

$

629

About WebMediaBrands Inc.

WebMediaBrands Inc. (Nasdaq: WEBM) (http://www.webmediabrands.com)
is a leading Internet media company that provides content, education,
and career services to social media, traditional media, and creative
professionals through a portfolio of vertical online properties,
communities, and trade shows. The Company's online business includes:
(i) mediabistro.com,
a leading blog network providing content, education, community, and
career resources (including the industry's leading online job board)
about major media industry verticals including new media, social media,
Facebook (News - Alert), TV news, advertising, public relations, publishing, design,
and mobile; (ii) InsideNetwork.com,
a leading network of online properties providing original market
research, data services, news, and job listings on the Facebook
platform, on social gaming, and on mobile applications ecosystems; and
(iii) SemanticWeb.com,
a leading blog providing content, education, community resources and
career resources on the commercialization and application of Semantic
Technologies, Linked Data, and Big Data. The Company's online business
also includes community, membership and e-commerce offerings including a
freelance listing service, a marketplace for designing and purchasing
logos (stocklogos.com) and premium membership services. The Company's
trade show and educational offerings include conferences, online and
in-person courses, and video subscription libraries on topics covered by
the Company's online business.

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release that are not
historical facts are "forward-looking statements" under the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those described in the
forward-looking statements. The potential risks and uncertainties
address a variety of subjects including, for example: general economic
conditions; the competitive environment in which WebMediaBrands
competes; and the unpredictability of WebMediaBrands's future revenues,
expenses, cash flows and stock prices.For a more detailed
discussion of such risks and uncertainties, refer to WebMediaBrands's
reports filed with the Securities and Exchange Commission pursuant to
the Securities Exchange Act of 1934. The forward-looking statements
included herein are made as of the date of this press release, and
WebMediaBrands assumes no obligation to update the forward-looking
statements after the date hereof, except as required by law.